Delek Logistics Partners, L.p. · NYSE:DKL

Delek Logistics Partners, L.p — Investor Presentation (June 2013)

28 slides from Delek Logistics Partners, L.p's investor presentation, Jun 25, 2013

  1. Slide 1: Delek Logistics Partners, LP Investor Presentation June 2013

    Delek Logistics Partners, LP Investor Presentation June 2013

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements 2 These slides and the accompanying oral presentation contain forward-looking statements by Delek Logistics Partners, LP (defined as “we”, “our”) that are based upon our current expectations and involve a number of risks and uncertainties. Statements concerning current est

  3. Slide 3: Delek Logistics Partners, LP Overview

    Delek Logistics Partners, LP Overview: Ticker: DKL Exchange: NYSE IPO Date: November 2, 2012 Sponsor: Delek US Holdings, Inc. (NYSE: DK) IPO Price: $21.00 Current Price:(1) $32.50 Current Yield:(2) 4.74% Annualized Distribution(2) $1.54/unit Market Capitalization:(1) $791 million Ownership - Public

  4. Slide 4: Delek Logistics: A Compelling Investment Opportunity

    Delek Logistics: A Compelling Investment Opportunity 4  4.74% yield (1)  Distribution increased 2.7% over MQD since Nov. 2012  Estimated $25-$30 million of EBITDA from potential drop-down acquisitions  Organic growth opportunities in strategically compelling region  Delek US had a 44% EBITDA(2)

  5. Slide 5: Growth Oriented, Financially Strong Sponsor

    Growth Oriented, Financially Strong Sponsor • 140,000 bpd of refining capacity in Texas and Arkansas • Related crude / product terminals, pipeline and storage assets • 373 convenience stores(1) Operational Strength 5 (1) As of March 31, 2013. (2) As of June 24, 2013. (3) Pro forma for IPO of Delek L

  6. Slide 6: Sponsor Track Record of Profitable Growth Through Acquisitions

    Sponsor Track Record of Profitable Growth Through Acquisitions 6 2005 2006 2007 2008 2009 2010 2011 2012 April 2005  Tyler refinery and related assets  $68.1 million(1) August 2006  Abilene and San Angelo terminals  $55.1 million July 2006  43 retail fuel and convenience stores  $50.0 million

  7. Slide 7: Delek Logistics Partners, LP Overview

    Delek Logistics Partners, LP Overview

  8. Slide 8: Stable, Fee-Based Cash Flows

    8 Stable, Fee-Based Cash Flows Assets support Delek US' highly profitable and strategically located inland refining system Inflation-indexed fees for most contracts Majority of all margin generated by long term, fee-based contracts with volume minimums Agreements with Delek US cap maintenance capex

  9. Slide 9: Stable Asset Base Positioned for Growth

    Stable Asset Base Positioned for Growth 9 Pipeline/Transportation  Approximately 400 miles of crude and product transportation pipelines  600 mile crude oil gathering system  Associated storage facilities with 1.7 million barrels of crude oil active shell capacity Wholesale/Terminalling  Wholesa

  10. Slide 10: Lion Oil Pipelines and SALA Gathering

    Lion Oil Pipelines and SALA Gathering 10 • El Dorado and Magnolia systems -106 miles of pipelines • Connects refinery to Enterprise TE Products Pipeline and Exxon North crude oil pipeline (2) • ~135,000 bbls of shell storage(1) • Improved access to Mid Valley pipeline began May/June 2013 • Ability t

  11. Slide 11: Paline Pipeline

    Paline Pipeline 11 (1) Fee can be pro-rated upwards if volume exceeds 30,000 bpd (2) Forecast for twelve month period ending 9/30/2013 as provided in the Nov. 1, 2012 prospectus  185 mile crude oil pipeline - Mainline pipeline flow reversed from northbound to southbound.  100% of mainline capacity

  12. Slide 12: East Texas Logistics System Provides Flexibility to Tyler Refinery

    East Texas Logistics System 12 Provides Flexibility to Tyler Refinery • 101 mile pipeline system that connects Tyler to Longview, TX • Connects to West Texas Gulf pipeline at Longview, TX • Completed project to make Nettleton pipeline bi-directional • 780,000 bbls (1) of storage capacity allows blen

  13. Slide 13: Texas Marketing

    Texas Marketing 13 West Texas Wholesale Marketing • Purchases refined products from third parties for resale at owned and third party terminals in West Texas • Margin per barrel has improved since 2011 • Growing volumes; increased 24% since 2009 • Operates in a growing area around the Permian Basin;

  14. Slide 14: Terminals

    Terminals 14 • Serves Delek’s retail segment and independent third parties Nashville, TN • Refined products terminalling services for Delek and/or third parties • Three terminals with 412,731 bbls of shell capacity (1) • Terminal fee of $0.50/bbl (Memphis and Big Sandy) (1) The Big Sandy terminal (1

  15. Slide 15: Delek Logistics Strategy

    Delek Logistics Strategy 15 Generate Consistent Growth Generate Stable Cash Flow Pursue Organic Expansion Optimize Existing Assets Pursue Accretive Acquisitions

  16. Slide 16: Several Visible Pathways to Growth

    Several Visible Pathways to Growth 16 Dropdowns from Delek US Organic Growth Acquisitive Growth  $25 - $30 Million of potential EBITDA expected to be dropped down over next 18-24 months  ROFO on the following Delek US assets:  Refinery based terminals (2) and four million barrels of storage capac

  17. Slide 17: Financial Overview

    Financial Overview

  18. Slide 18: Strong Start to 2013

    Strong Start to 2013 (1) Forecast as provided in the November 1, 2012 prospectus.  Distributable Cash Flow 21% higher than forecast (1):  Higher volumes in the SALA Gathering system; 22,130 bpd vs. 19,500 bpd forecast  West Texas Wholesale Marketing benefited from:  Improved Volume and Margins 

  19. Slide 19: Financial Strategy Provides Flexibility for Growth

    Financial Strategy Provides Flexibility for Growth 19 Maintain Stable Cash Flows  Continue to seek fee-based revenues  Focus on long-term contracts with minimum volume commitments  Limit commodity price exposure Conservative Financial Policies  $175 million revolver, expandable to $225 million 

  20. Slide 20: Cash Available for Distribution

    Cash Available for Distribution 20 (dollars in millions) 1Q13 Actual Results and Forecast Twelve Months ending September 30, 2013 (3) (1) Non-GAAP measure. See pg. 29 for the reconciliation to GAAP. (2) Distribution for forecast period based on $1.50 per unit; Distribution for three months ended Mar

  21. Slide 21: Appendix

    Appendix

  22. Slide 22: Delek US' Refineries are Strategically Positioned and Flexible

    Delek US' Refineries are Strategically Positioned and Flexible 22  Inland refinery located in East Texas  60,000 bpd, 9.5 complexity  Primarily processes inland light sweet crudes (100% in 2012)  93% yield of gasoline, diesel and jet fuel in 2012 El Dorado Refinery Tyler Refinery  Inland refine

  23. Slide 23: Summary of Certain Contracts

    Summary of Certain Contracts 10 23 (1) Maximum term gives effect to the extension of the commercial agreement pursuant to the terms thereof. (2) Represents average daily throughput for the period indicated, excluding jet fuel and petroleum coke in the East Texas marketing operations. (3) Excludes vo

  24. Slide 24: Omnibus Agreement

    Omnibus Agreement 24  Under the omnibus agreement, Delek Logistics has a ROFO for 10-years post IPO if Delek US decides to sell the following assets:  Tyler refinery refined products terminal  Tyler storage tanks  El Dorado refined products terminal  El Dorado storage tanks  Additionally, Dele

  25. Slide 25: Summary Organization Structure

    Summary Organization Structure 25 37.6% common limited partner interest 100% ownership interest (1) 2.0% general partner interest Incentive distribution rights Delek Logistics Partners, LP NYSE: DKL (the Partnership) 100% ownership interest Public Unitholders Operating Subsidiaries 11.4% common limi

  26. Slide 26: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 26 2002 2012 Operating Income $7.6 $473.1 Loss on Sale of Assets - (0.1) Impairment of Goodwill - - Depreciation and Amortization 7.4 82.5 EBITDA $15.0 $555.5 Year Ended 12/31 Delek US LTM EBITDA Reconciliation 3 Months Ended March 31, LTM 2011 2012 2012 2013 3/31/2013 Operat

  27. Slide 27: Non-GAAP Reconciliation (Cont'd)

    Non-GAAP Reconciliation (Cont’d) 27 (1) Includes approximately $2.0 million of estimated annual incremental general and administrative expenses expected to incur as a result of being a separate publicly traded partnership. (2) Interest expense and cash interest both include commitment fees and inter

  28. Slide 28: Investor Relations Contact

    28 Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President, CFO Vice President of Investor Relations 615-224-1158 615-435-1366

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